Australian Energy Producers says federal budget must target new gas supply
Australia's peak oil and gas industry body, Australian Energy Producers, on February 5 issued a call to the government, urging the inclusion of measures in the federal budget to address forecasted shortages, alleviate pricing pressures, and ensure the economic and emissions reduction benefits of abundant natural gas resources.
In its 2024-25 federal budget submission, the industry advocates for a comprehensive plan to unlock new gas supply and avert impending shortfalls on both coasts. The Australian Energy Producers emphasises the importance of maintaining affordable and reliable energy for homes and businesses.
"After more than a year of policy instability, government interventions, and project approval delays, a recalibration of the policy and investment environment for natural gas is needed to secure our energy future," Samantha McCulloch, CEO of Australian Energy Producers, stated.
Australian Energy Producers has urged the government to release new acreage for petroleum exploration, with the last round dating back to August 2022. It also wants the government to resume long overdue acreage releases, typically held annually.
The oil and gas industry has also cautioned the government against making price controls on the east coast gas market permanent. It wants the government to outline a plan to return to market signals and incentivise new supply ahead of the 2025 review of the Code of Conduct.
The government should review energy needs for critical minerals processing to ensure gas supply for manufacturing minerals crucial for achieving net zero, it said. It should develop a Future Gas Strategy recognising the long-term role of gas in achieving net zero by 2050.
The oil and gas industry also wants the government to establish Australia as a regional CCUS hub, including developing a national roadmap and creating Net Zero Zones to expedite emissions reductions.
McCulloch called for an urgency of securing new gas supply and called for collaboration between the Federal Government, gas producers, energy users, and state governments to address near-term structural shortfalls.
The submission also proposes the establishment of an Australian LNG Producer-Consumer Taskforce to strengthen regional relationships and ensure Australia benefits from potential growth in Asian LNG demand. Additionally, it advocates for a CCUS roadmap to scale up CCUS technologies and support emissions reductions.